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Extension, fit-out or new construction?

Barcelona, Wednesday 31st of August 2016 – Extension, fit-out or new construction? Many managers face this question at some point during their professional life. To rely upon external specialized help ensures the choice of a successful option since many are the factors to be taken into account which managers are unfamiliar with.

Top Management, as an engineering and consultancy firm, offers these services not only evaluating the options presented by the customer but also providing solutions or new alternatives that adapt to their needs. Top Management’s team is an essential ally during decision making due to their experience, involvement and versatility.

Before making a decision, it’s important to know why a need for more space has arisen and it’s also necessary to define what it is we want to achieve with an increase in space: a better space optimisation, an improved distribution, gain in stocking capacity, implement a new working method (automated warehouse, new technologies incorporation, introduce a new procedure to raise the firm’s productivity, etc.)

Extension, fit-out or new construction?

There are various ways of increasing space which are more or less expensive and therefore gain more or less space:

1.- Fit-out of the exiting warehouse

  • Advantages: allows space optimisation, updates the installations and adapts the warehouse to the current needs investing less money and with a short time frame.
  • Disadvantages: Less space is gained and the activity might be interrupted.

2.- Extension

  • Advantages: increases warehouse or offices space without interrupting the activity. The time frame and investment is less than that of a new construction.
  • Disadvantages: the existence of free land on which to extend the facility.

3.- Fit-out of a facility where the firm’s activity is not taking place

  • Advantages: the space can be designed for a specific use with less investment and time frame than that of a new construction.
  • Disadvantages: a due diligence will have to be carried out before considering this option. Will have to adapt to the existing dimensions.

4.- New construction

  • Advantages: warehouse conceived 100% for a specific used, can chose a good location, etc. Activity will not be interrupted during the works.
  • Disadvantages: both investment and time frame are greater.

Once an option has been decided upon, it’s important to carry out the project within the budget, time frame and quality requested and expected in order to do so a Project Manager or Project Monitor can be really helpful.

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